ORDER

02.12.2025

The batch of appeals have been filed to challenge the order dated 22.08.2022 passed by the Adjudicating Authority confirming the Provisional Attachment Order (‘PAO’) dated 23.11.2021. It was for attachment of 27 immovable and 5 movable properties. The value of the movable properties is of Rs.19,11,98,679/-, while the value of 27 immovable properties as on the date of registration of deed was of Rs.1,70,64,725/- while current guideline value is of Rs.5,74,95,619/-.

Brief facts of the case:

2. The PAO as well as the order passed by the Adjudicating Authority confirming it, were arising out of an FIR bearing No. 19/2012 registered against Shri K Ponmudi and others for commission of offences under Sections 406, 420 and 379 read with Section 120B of the Indian Penal Code, 1860 (‘IPC’) along with Section 13(2) read with Section 13(1)(d) of the Prevention of the Corruption Act, 1988. It was even for section 4(1) and 4(1A) read with Section 21 of the Mines and Minerals (Development and Regulation) Act, 1959 apart from Rule 36A of the Tamil Nadu Minor Mineral Concession Rules, 1959.

3. After registration of the FIR, the investigation was caused by the investigating agency and finding evidence for commission of offence, a charge-sheet was filed before the Court on 20.12.2012. It was alleged that Shri K. Ponmudi while serving as a Minster for Mines and Minerals in the State of Tamil Nadu entered into a criminal conspiracy with his son, Shri Gautham Sigamani and other related persons for obtaining quarry licences of red sand in favour of his son (two licences), one Shri Jayachandran, a friend of his son (one licence) and Shri K.K. Rajamahendran, his son’s brother-in-law (two licences). The licence holders allegedly quarried red sand beyond the permitted quantities without payment of seigniorage fees, thereby causing wrongful loss of Rs.28,36,40,600 to the Government of Tamil Nadu. The offences under Sections 420 and 120B IPC and Section 13 of the Prevention of Corruption Act are scheduled offences under the PMLA. Since the offences mentioned in the FIR were scheduled offences under Section 2(1)(y) of the PMLA, a prima-facie offence of money laundering under Section 3 of the Prevention of Money Laundering Act, 2002 (in short “the Act of 2002”) appeared to have been made out, and accordingly, ECIR No. CEZO-11/02/2019 dated 25.04.2019 was registered by the Directorate of Enforcement, Chennai.

4. According to the FIR and the charge-sheet filed by the District Crime Branch, Villupuram, it was revealed that from 13.02.2007 to 15.02.2011, when Shri K. Ponmudi was holding charge as Minister for Mines and Minerals exercised his influence over Shri Krishnamurthy, Assistant Director, Mines and Minerals Department, Villupuram, who was directly under his administrative control, and directed him to accept and process the quarry licence applications submitted by Shri Gautham Sigamani, Shri K.S. Rajamahendran and Shri Jayachandran without raising any objections. It was further found that Shri Ponmudi decided to obtain quarry licences in the names of his son, relatives and close associates, and thereby misuing his official position.

5. The investigation further revealed that Shri Gautham Sigamani had acquired patta land in Poonthurai Village under Survey Nos. 405/1B (52.0), 405/12 (35.5), aggregating to 87.5 hectares, vide Document No. 1017/2007 dated 16.02.2007, from one Mahaveer of Vepery, Chennai. He entered into a three- year lease agreement with Shri Jayachandran, who applied for a licence to quarry red sand on 02.03.2007. Under the influence of Shri Ponmudi, Licence No. RC A/G&M/517/2007 dated 21.03.2007 was issued permitting quarrying for three years. Under the administration of Shri Loganathan and Shri Sathanandam, 33,094 lorry loads of red sand were quarried against the permitted 10,000 loads, resulting in an excess of 23,094 lorry loads without payment of fees, thereby causing a revenue loss of Rs.2,65,58,100.

6. On 02.08.2007, Shri Gau